What moves the Market?

Is it just me or is the current bull market based on "not as bad as expected" results? If you really look at home sales numbers or unemployment numbers they are still deteriorating, just at a slightly slower rate. The argument is that it's a sign of the economies eventual recovery but i'm not sure I'm on board.

With this logic, now would be a great time to invest in AIG. They posted a staggering 62 billion dollar quarterly loss last quarter and only posted a 5 billion dollar loss this quarter. WOW! That's an amazing recovery, right? What are you waiting for, they are only 5 billion dollars away from making money again...